TOC: To achieving goal of any organization is to deal with undesired effect that causes to away from
goal. So, TOC states that managing organization is to managing undesired effect i.e., constraint.
Constraint: It is a bottleneck in any organization, which prevents things to achieve organization goal.
Bottleneck: Any resources with a capacity equal to or less than the demand placed upon it.
The Theory of Constraints provides a powerful set of tools for helping to achieve that goal, including:
The Five Focusing Steps: a methodology for identifying and eliminating constraints
The Thinking Processes: tools for analyzing and resolving problems
Throughput Accounting: a method for measuring performance and guiding management decisions
Five Focusing Steps in TOC
Step 0: Define system GOAL.
Step 1: Identify the system CONSTRAINTS. To achieve goal, we must identify and alleviate the current
bottleneck.
Step 2: DECIDE how to EXPLOIT the system constraints. Now we know what our constraint is. Make
quick improvements and maximize the utilization and productivity of the constraint using existing
resources
Step 3: SUBORDINATE everything else to the decision. Review all other activities in the process to
ensure that they are aligned with and truly support the needs of the constraint.
Step 4: Elevate the system constraint. If the constraint still exists (i.e., it has not moved), consider what
further actions can be taken to eliminate it from being the constraint.
Step 5: Avoid Inertia. If constraint is broken in any of the preceding steps, then go back step 1.
The Thinking Processes:
The Theory of Constraints includes a sophisticated problem solving
methodology called the Thinking Processes.
The Thinking Processes are used to answer the following three questions,
which are essential to TOC:
What needs to be changed?
What should it be changed to?
What actions will cause the change?
Examples of tools that have been formalized as part of the Thinking
Processes include:
Tool Role Description
Current Documents the Diagram that shows the current state,
Reality Tree current state. which is unsatisfactory and needs
improvement. When creating the
diagram, UDEs (symptoms of the
problem) are identified and traced back
to their root cause (the underlying
problem).
Evaporating Evaluates Diagram that helps to identify specific
Cloud Tree potential changes (called injections) that eliminate
improvements. UDEs. It is particularly useful for
resolving conflicts between different
approaches to solving a problem. It is
used as part of the process for
progressing from the Current Reality
Tree to the Future Reality Tree.
Future Documents the Diagram that shows the future state,
Reality Tree future state. which reflects the results of injecting
changes into the system that are
designed to eliminate UDEs.
Strategy and Provides an Diagram that shows an implementation
Tactics Tree action plan for plan for achieving the future state.
Tool Role Description
improvement. Creates a logical structure that
organizes knowledge and derives tactics
from strategy. Note: this tool is intended
to replace the formerly used
Prerequisite Tree in the Thinking
Processes.
https://www.leanproduction.com/theory-of-constraints/
There are following layer of resistance in TOC which prevents to achieve goal:
1. Not agreeing on the problem.
2. Not agreeing the direction of solution.
3. Incompleteness of the solution.
4. Yes, BUT. Raising negative ramification of the idea. The proposed solution will create other
problem
5. Yes, but. Raising obstacle. There are huge obstacles to implementing the proposed solution.
6. Unverbalised Fear. a vague feeling of unease arising from the fact that we will be doing
something entirely new.
